>>> Boeing misses by $2.68, reports revs in-line with last week's guidance; impa

Boeing misses by $2.68, reports revs in-line with last week's guidance; impacted by previously announced IAM work stoppage (175.19)
  • Reports Q4 (Dec) core (non-GAAP) loss of $(5.90) per share, $2.68 worse than the FactSet Consensus of ($3.22); revenues fell 30.8% year/year to $15.24 bln vs the $15.68 bln FactSet Consensus and in-line with its $15.2 bln guidance from last week.
  • Co says results were impacted by previously announced IAM work stoppage and agreement, charges for certain defense programs, and costs associated with workforce reductions announced last year. Co reported operating cash flow of ($3.5) billion and free cash flow of ($4.1) bln.
  • "We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan," said Kelly Ortberg, Boeing president and chief executive officer. "My team and I are focused on making the fundamental changes needed to fully recover our company's performance and restore trust with our customers, employees, suppliers..."
  • Segment Performance:
    • Commercial Airplanes Q4 segment revenue fell 55% yr/yr to $4.76 bln with (43.9)% segment operating margin.
      • Results reflect the previously announced impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax charges of $1.1 bln on the 777X and 767 programs.
      • The 737 program resumed production in the quarter and plans to gradually increase production rate.
      • The 787 program exited the year at a production rate of five per month and recently announced plans to expand South Carolina operations.
      • In January, the 777X program resumed FAA certification flight testing, and the company still anticipates first delivery of the 777-9 in 2026.
      • Commercial Airplanes booked 204 net orders in the quarter, including 100 737-10 airplanes for Pegasus Airlines and 30 787-9 airplanes for flydubai.
      • Commercial Airplanes delivered 57 airplanes during the quarter and backlog included over 5,500 airplanes valued at $435 bln.
    • Defense, Space & Security Q4 segment revenue fell 20% yr/yr to $5.41 bln with (41.9%) operating margin.
      • In January, the U.S. Air Force announced an updated acquisition approach for the T-7A Red Hawk that allows the company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk.
      • During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, secured an order for seven P-8A Poseidon aircraft from the U.S. Navy, and delivered the final T-7A Red Hawk engineering and manufacturing development aircraft to the U.S. Air Force.
      • Backlog at Defense, Space & Security was $64 billion, of which 29% represents orders from customers outside the US.G
    • Global Services Q4 segment revenue rose 6% yr/yr to $5.12 bln with 19.5% operating margin reflecting higher commercial volume and mix. During the quarter, Global Services secured awards for C-17 sustainment and a contract for F-15 Japan Super Interceptor upgrade services from the U.S. Air Force.